Mondi to proceed with R2 billion (US$220 million) expansion at Richards Bay mill
25 March, 2003
Anglo American plc announces that its wholly owned Forest Products subsidiary, Mondi South Africa, is to proceed with a R2 billion (US$220 million) expansion and modernisation of its Richards Bay mill in KwaZulu-Natal in South Africa, increasing capacity for bleached eucalyptus pulp production by some 40%.
The mill's total capacity, which includes both eucalyptus pulp and whitetop kraftliner, will increase from the current 575,000 tonnes to 720,000 tonnes and the additional production will be available from early in 2005. Incremental revenues from the expansion are projected at some R500 million per year in today's terms, with the additional pulp planned mostly for export to Europe, including to Mondi Europe's Neusiedler paper mill.
Before proceeding with construction, approval is required from the KwaZulu-Natal department of Agriculture and Environment Affairs, following the formal environmental impact assessment (EIA). It is expected that this approval will be received during April.
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